Japan-based Dai-ichi Life Insurance has entered into an agreement to acquire another 18% stake in its Indian joint venture (JV) Star Union Dai-ichi Life from Bank of India.
The deal worth $80m will increase the Japanese insurer’s stake in the Indian JV to 44% from 26%.
As a result of the current deal, the JV partner Bank of India’s stake will decrease from 48% to 30%, while another partner Union Bank of India (UBI) will continue to hold 26%.
Last year, the Government of India introduced a new law, allowing foreign insurers to acquire up to 49% stake in local insurance ventures.
Star Union Dai-ichi Life provides individual and group products to its customers.
The company offers a range of individual products, comprising of protection, wealth children’s education and marriage, as well as savings and investments.
It also provides group products, including credit life plans, term plans and withdrawn products.
In 2015, Dai-ichi Life Insurance acquired US-based insurer Protective Life, for around $5.7bn.
Protective Life Insurance provides personalized products and services to meet the life insurance, retirement income and asset protection needs of individuals and families in the US.
Image: DN Tower 21, headquarters of The Dai-ichi Mutual Life Insurance Company in Chiyoda, Tokyo, Japan. Photo: courtesy of Rs1421.